Mining Chemicals Market growing at a CAGR of 6.4% from 2024 to 2030

According to a World Bank article published in March 2020, the production of minerals such as graphite, cobalt, and lithium will grow by 500% by 2050 due to the growing demand for clean energy technologies. Thus, increasing demand for minerals boosts the demand for mining chemicals in the market.

The demand for the product in North America is primarily driven by the increasing mining operations and mineral production in the U.S. and Canada. The coal industry is the key end-user of the product as it is highly reliable on coal for generating electricity. In the U.S., over 19.3% of electricity was generated from coal in 2020, as per the data by the U.S. Energy Information Administration.

In the coming years, digital mines are likely to utilize evolving digital technologies such as the Industrial Internet of Things (IIoT). For instance, purposively placed sensors that are connected to the internet can be used for the collection of data from mines in real time. They help in improving the efficiency of operations, reduce costs, and enhance safety. They also help in eliminating injuries and fatalities caused by high-energy environments. These factors are expected to create new opportunities for the mining industry over the forecast period.

Mining chemicals are manufactured using raw materials such as nitric acid, mercury, sulfuric acid, cyanide, lead, and uranium. These chemicals are highly harmful and toxic to humans and the environment. As a result, they are regulated by several regulations, including the Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH), the Industrial Chemicals Act, and the OSPAR Convention.

Market Concentration & Characteristics

Companies such as BASF SE, Ashland Inc., AECI, and Dow dominate the market due to their global presence and extensive product portfolio catering to each application market. The market is highly competitive due to the presence of multinationals that are engaged in constant expansion and research & development activities. In January 2023, BASF SE and Eramet announced an agreement worth USD 2.6 billion to establish a facility in Indonesia for processing nickel, specifically for use in electric vehicle (EV) batteries.

Companies such as BASF SE, Clariant AG, and Ashland Inc. have very diverse product portfolios. These companies have well-established brands, such as Rheomax, Derakane, and FLOTIGAM 5806, which have a prominent presence in the market. A majority of the players are integrated across the value chain to gain a competitive edge in the market. For instance, Clariant AG manufactures iron and copper ores for various end-use industries such as agriculture & animal feed, automotive & transportation, coatings, building & construction, paints, inks, and consumer goods.

Key players in the industry are focused on increasing the production of their core product portfolios, including high-quality mining chemicals, to gain significant market shares. The discovery of new chemicals and technological advancements have led to the development of eco-friendly products, which are used in green manufacturing processes of production. Arkema, SNF Flomin, and ArrMaz are some of the players in the market that offer raw materials for the production of such products.

Mining Chemicals Market Report Scope